House Speaker Nancy Pelosi is rejecting the White House’s most recent debt ceiling proposal, which included $150 billion in spending cuts, Bloomberg News reported on Friday.
The White House sent a two-year budget agreement to Speaker Pelosi late on Thursday, requesting the Democrats select $150 billion in spending cuts from a list of $574 billion saving opportunities, the news outlet reported citing a Democratic official close to the talks.
The White House proposal is a “starting point,” officials told Bloomberg.
Negotiations between the Trump administration and congressional leaders have heightened recently in efforts to reach an agreement before Congress’ recess on July 26, as “conservative” estimates from Treasury Secretary Steven Mnuchin say the U.S. could lose its spending ability as early as September.
Pelosi’s rejection of the deal, which reportedly didn’t include any revenue or tax increases, comes after Secretary Mnuchin told CNBC Thursday that the market should not be “concerned” about a debt ceiling deal getting past.
Mnuchin said neither party wants to put the U.S. government at risk of defaulting.
“I think that nobody wants a shutdown in any scenario. So I don’t think the market should be concerned, and we’re working hard. We’ll get there one way or another,” Secretary Mnuchin told CNBC’s “Squawk Box.”
Both sides are hoping to come to an agreement on Friday in order to get a House vote next week, the report said.
”[Pelosi] seems to want a deal as much as the President wants a deal and she should,” Senator Kevin Cramer (R-ND) told CNBC’s Squawk Box Friday.